The Verifiable Truth: Michigan

Showing posts with label Michigan. Show all posts

Tuesday, January 31, 2012

Blogger: Sault Tribe's Lansing Casino Won't Happen; Mayor Irresponsibly Dangles Economic Carrot

Turtle Talk

Commentary on Sault Tribe’s Proposed Lansing Casino
1.23.2012

I can’t not say anything, since this proposed casino is in our own backyard. But seriously? The mayor says in 12-24 months he expects construction to start, and then another year or so after that there will be a fully functioning Indian casino in Lansing.

Wow.

We’re going to predict that it won’t happen. No chance.

Off-reservation Indian gaming is the most hotly-contested, politicized issue in American Indian affairs right now and maybe forever. Think of the interests arrayed against a Lansing casino, let alone one owned by an Indian tribe. The Detroit casinos will be opposed because it will cut into their bottom lines, and the entire City of Detroit, the Michigan Congressional delegation, the unions,everyone will throw their weight against this casino proposal...

Of course, I’m no political scientist. Politics is money (see Citizens United) and anything can happen, including a backlash against Indian gaming that persuades Congress to ban off-reservation gaming. But the mayor’s three years is a dream, and kind of sick thing to promise to people in Lansing who might believe the mayor and see this as a real possibility for improving their lives. (Complete Blog Post)

Monday, January 30, 2012

Mayor Heralds Off-Reservation Casino Schemes in Lansing; Then Uses Racial Slurs to Attack Native American Opponents

Lansing Mayor Virg Bernero recently announced a plan to bring a $245 million tribal casino to downtown Lansing. The casino would be adjacent to the Lansing Center near Cedar Street and Michigan Avenue. However, there's nothing to suggest that the Sault Ste Marie tribe of Chippewa Indians has the necessary state and federal approvals to build any off-reservations casino.

In fact, the former chairman of the National Indian Gaming Commission has recently opined such would be illegal under current guidelines.

Bernero subsequently came under fire for what two Michigan tribes described as a string of anti-Indian racial slurs at a fund-raising speech last week, denied Monday that he directed his remarks toward Americans Indians, but apologized “to any and all who were offended by my choice of words.”

click arrow below to play video here

Wednesday, January 25, 2012

Editorial: Lansing casino would be a lousy bet for Michigan

EDITORIAL

By Editors, Detroit Free Press

As only the most recent arrivals in the long line of players looking for a piece of Michigan's casino gambling action, Lansing and Mayor Virg Bernero should know better.

Artist's Rendering: Proposed Kewadin Lansing Casino

Michigan voters made it quite clear (58%-42%) in 2004 that they did not want more gambling in the state unless any expansion was subject to a statewide vote. Ever since, casino dreamers have tried to build upon the constitutional amendment's only exemption, which allows tribal gambling over which the state has virtually no control anyway.

But tribal casinos are restricted to their own reservations. Every tribe that has tried to work around that restriction to date has come up empty-handed. The most recent attempt, a casino in Vanderbilt that the Bay Mills tribe opened in 2010, shut down after a federal court ruled against it. Earlier attempts included asking Congress to sign off on tribal casinos in Port Huron and Romulus, an effort that fell short.

Now Bernero is entering the same fray with the Sault Ste. Marie Tribe of Chippewa Indians at his side. They will either have to go to Congress or hope that the Bay Mills tribe eventually wins its court case in further hearings and sets a new precedent for defining reservation land. But neither the federal courts nor Congress should fall for the dubious logic involved.

Unless a casino can become a major destination for out-of-state travelers, it largely churns local money and removes much of it from the economy. Casinos rank as economic development tools only as part of a mix of entertainment options or, if properly promoted, as a lure for visitors. If Michigan were to develop a statewide casino strategy, Port Huron would probably better fit the development bill as the only border town without a casino.

Lansing residents -- and Michigan State students -- are already within an hour's drive of two of Michigan's 22 Indian casinos. They are hardly out of range of Detroit's casinos, either.

Presumably Bernero and the Sault tribe have marketing studies to back up their estimates of $250 million in annual revenue, with at least $5 million returned directly to the city. (By way of comparison, Detroit's casinos were estimated to have revenues of $1.4 billion in 2011 -- a figure they may never match again if a Toledo casino opens in April, as planned.) Certainly Lansing, like virtually every city in Michigan, would delight in the projected 1,500 new jobs.

But if Lansing succeeds, it will create a precedent not just for itself but for every other city that thinks a casino is the answer to its prayers. Michigan's voters have already said they don't want to go that route -- and praying for salvation via a casino is only a reminder of how desperate people become in tough economic times.

Related Links:

Blogger’s NOTE: Odd that owners of Detroit’s MGM Grand Casino and Greektown Casino have expressed opposition to plans for a Lansing casino while Marian Ilitch, owner of Detroit’s MotorCity Casino, has remained silent? Not really, since Ilitch and her family’s partner Michael J. Malik, Sr., have pursued plans for casinos in Port Huron and elsewhere for more than 20 years. In fact, their plans for a Port Huron casino might be tied to plans by the Sault tribe proposal for Lansing.

Sunday, January 22, 2012

Former NIGC Chair Opines Sault Tribe's Plans for Lansing Casino are Illegal

In this letter below, Phil Hogen, former chair of the National Indian Gaming Commission (NIGC), opines on plans by the Sault St. Marie tribe of Chippewa Indians to develop an off-reservation casino in Lansing Michigan.

In conclusions, Hogen writes:

In view of my experience as the longest-serving Chairman of the National Indian Gaming Commission, I was asked to review this matter by the Saginaw Chippewa Indian Tribe of Michigan, whose concern for integrity in the Indian gaming industry I share. Unless it is first determined that lands where tribes conduct their gaming under the Indian Gaming Regulatory Act truly qualify as Indian Lands, that integrity is at peril, and all concerned need to observe and uphold the applicable laws.

Phil Hogen Letter Re Lansing Casino

Thursday, December 15, 2011

How Lance Boldrey Turned a Stint in the Governor's Office Into a 10+ Year Multi-Million Dollar Engagement with Detroit Casino Syndicators

Blogger's Note: We've received several inquiries about Michigan gaming attorney R. Lance Boldrey and note an increase in the number of people visiting TheVerifiableTruth.com as part of browser searches of Boldrey's name so we're republishing this 1.08.2007 post originally titled "Aide negotiated '11th Hour' Port Huron casino deal for Gov. Engler; then joined private practice, retained by those who got the deal"

On Sunday, January 7th, the Port Huron Times Herald published an editorial, "Feds must come to aid of Port Huron," suggesting that a Bay Mills Indian Casino planned for that community might still be alive. At the very least, the following raises ethical questions and creates curious circumstances surrounding the proposed casino, deserving of investigation and disclosure.

R. Lance Boldrey joined the staff of Michigan Governor John Engler sometime in 1999 as Deputy Legal Counsel and chief negotiator for Indian Affairs matters in the Governor's third and final term.

Throughout most of Engler’s 12 years as Governor, Engler steadfastly opposed the expansion of Indian gaming... BUT in the final months, with Boldrey helming negotiations, something changed.

In September 2002, roughly three months before Engler's term would expire, the Governor was compelled to sign a land claims settlement agreement Boldrey and others had negotiated the month before with the Bay Mills Indian Community. The agreement would pave the way for a third Bay Mills Indian Community casino to be developed in the urban border town of Port Huron, 350 miles away from its Brimley, MI reservation.

On December 20, 2002, with less than two weeks remaining on his term, Gov. Engler also signed a new Tax Agreement with the Bay Mills Indian Community covering (or protecting) the Tribe, its proposed Port Huron casino and other commercial and trust properties. Presumably Boldrey played a lead role in those negtotiations as well.

Oddly enough, the so-called "land claims" made by the Bay Mills Tribe in 1996 (the threat driving any need for a Settlement Agreement at all) were never verified. Both state and federal courts tossed out the claims, at that time, on administrative grounds. This raises question about the rushed 11th hour change of policy by Engler and the need for any Settlement Agreement at all. Did the state trade a casino for land claims that weren't legitimate afterall? Were the circumstances surrounding the Settlement Agreement just a theatrical smokescreen to rationalize approval for a third Bay Mills Tribal casino in Port Huron?

But Engler knew the land claims weren't valid and that they were being used to leverage a casino because in a 1999 opinion letter published by the Record Eagle intended to set the record straight, Engler wrote:

"... I find it remarkable that Congressman Stupak would step in at this late date and join with the Bay Mills Tribe in using the Charlotte Beach homeowners as political pawns. Make no mistake about it - Congressman Stupak's proposal is solely about trying to give the Bay Mills Tribe an otherwise illegal casino..."

"... the state of Michigan has stood by these properly owners since day one, defended them in court, and won the dismissal of the Bay Mills lawsuit against the Charlotte Beach owners. I have no doubt that this dismissal will hold up on appeal ..."

R. Lance Boldrey parlayed stint in Governor's
Office into 10+ year million dollar engagement

Within weeks of Engler approving the the Settlement Agreement, Boldrey flew to Washington D.C. and eagerly represented Governor Engler before a U.S. Senate Indian Affairs Committee hearing on Capitol Hill. Backers of the Bay Mills casino were attempting to railroad congressional approvals in the closing days of the 107th Congress needed to affect terms of the Engler negotiated Agreements.

Boldrey's eagerness might partially be explained in part by the fact that in July 2002 the White House announced the President’s intention to nominate Boldrey to serve as a trustee of the Udall Foundation. The nomination wasn't sent to the Senate until January 2003 and Boldrey was confirmed in April 2003. During that 6-9 month period it was certainly in Boldrey’s interest to increase his profile in Washington D.C and exploit the credentials he’d developed during the short time he worked as Gov. Engler’s Indian Affairs agent.

With the help of people like Boldrey, first term Senator Debbie Stabenow (D-MI) had drafted and introduced S. 2986 as a companion to the Settlement Agreement on September 20, 2002. Less than two weeks after its introduction (usually this takes months, sometimes even more than a year), the bill was scheduled to be heard before the full Senate Indian Affairs Committee. At the October 10, 2002 hearing, as the Governor's representative, Boldrey sat beside the Bay Mills Community's elected Council President John Lufkins and together they urged the committee’s swift endorsement. It wasn't to be; Senator Harry Reid (D-NV), a leading Democrat and member of the Committee stood in their way.

Time was ticking on the Engler Administration and on the friday before the 2002 Christmas holiday, with less than 5-6 full business days left on the calendar, Governor Engler also signed a new Tax Agreement with the Bay Mills Tribe. Among other protections for the Tribe and its members, the Agreement exempted (page 9) hotel rooms, restaurant food and beverages sold as part of any casino and its adjoining resort properties from lodging taxes, sales taxes and use taxes.

Engler’s 12 year administraton came to an end on January 1, 2003 leaving Boldrey unemployed. But within weeks, Boldrey announced he was returning to private practice. He had decided to join the Lansing office of the Dykema Gossett law firm and was tasked with starting up an Indian Law Practice for the firm. A longtime Engler friend, confidant and political agent Richard D. McLellan was a senior partner in the Dykema office. The Dykema law firm had already been handling legal business matters for the MotorCity commercial casino partnership in Detroit. Ilitch, Malik and others who were founders of MotorCity Casino have been the driving force behind the third Bay Mills casino project for a decade or more.

So, Boldrey joined Dykema and before long, the Bay Mills Indian Community, its casino backers like Marian Ilitch and Michael Malik, and others whom previously had to negotiate across the table from Boldrey in his role as the Governor’s point man had retained Dykema Gossett (Boldrey & McLellan) to work on Indian law and gaming matters at prime corporate law firm rates. Boldrey's role now was to protect and advocate for their interests going forward.

What or who compelled the Governor's dramatic change of direction in the last months and days of his administration? Why this proposal instead of some other? Five years ago, those questions were swept under the carpet.

When had Boldrey decided to return to private practice? When did he open talks with Dykema? What role did Richard McLellan play in recruiting Boldrey? What involvement had McLellan had with the 11th hour negotiations with various tribes including Bay Mills? When did Boldrey's future clients learn of his career move? When did they first discuss a future working together? What relationships did he have with "Charlotte Beach" area land owners then or now? Who did he negotiate against as the Governor's representatives that paid him or Dykema after he joined Dykema?

Certainly an attorney whose credits included pulling-off a deal like this would be in high demand and command the highest of fees.

What relationships if any did Boldrey/McLellan have with attorneys Anthony Andary, Robert Golden?

With all of the other matters deserving greater urgency, why was there such a last minute push five years ago for a Settlement Agreement with Bay Mills Indians when they've yet to prove their land claims valid?

What's really at play in the "Charlotte Beach" (also referred to as "Hay Lake" by Bay Mills Tribal Council President) area referenced in the unverified land claims? The Hay Lake/Charlotte Beach locations are near impossible to find on maps in Chippewa County -- Atlas, Google, USGS, etc. or via governmental agency resources. It's only in old plat maps that one will find a reference to the "Charlotte Beach subdivision" east of the Barbeau community on Michigan's Upper Peninsula.
"Charlotte Beach" is a rather obscure place, not among those included in the USGS master place names data base nor referenced in resources available via the Department of Natural Resources at Michigan.gov; it is not noted as a town or community or any other place of significance in Michigan; other respective state and federal sources simply don't designate the 110- acre place. There are no obvious references noted by non-profit environmental or natural resource protection groups either. In fact, the only modern public documentation that references a place called "Charlotte Beach" in Michigan are documents related to the Bay Mills land claims. It is doubtful Governor Engler or anyone else for that matter had visited Charlotte Beach, Michigan to see for themselves what was going on there. One must wonder what sort of investigation was done to see who really owns land there or who has bought land since.

It just doesn't add up: a complete and documented reversal of a Governor's long held public policy stance opposing the expansion of gaming; no validated land claims, yet a signed Land Claims Settlement Agreement; two existing casinos already, just not in prime urban locations; an 11th hour Tax Agrement too; 110 acres of land in "Charlotte Beach," an area not designated on maps or by any public agencies or non-profit groups as significant or sensitive; and a lead negotiator who was later engaged by the very parties he once negotiated against. Before Congress or any other elected officials or public agencies take any further action, a complete investigation and full disclosures are warranted.

And what role or connections has political consultant Tom Shields (also an Engler insider, political advisor to Rep. Candice Miller, and longtime spin doctor to Mike & Marian Ilitch) played in these schemes?

See also:

Nov. Revenues Boost Year-Over-Year Performance of Detroit Casinos

Solid November boosts year-over-year revenues at MGM, MotorCity casinos

12.14.2011

By Jaclyn Trop

Detroit's two largest casinos continued to improve their revenue growth for the year with a solid November, leaving Greektown Casino and Hotel lagging, according to state statistics released Tuesday.

MotorCity Casino Hotel, the city's second-largest casino by market share, posted the largest year-over-year gain. The gaming hall posted revenues of $431.5 million from January through November of this year, a 5.8 percent gain over last year's $407.9 million, the Michigan Gaming Control Board reported.

Market share leader MGM Grand Detroit experienced a 2.8 percent rise in revenues to $547.4 million.

Revenues for Greektown Casino and Hotel, the smallest gaming hall, fell 0.9 percent to $321.7 million. (Complete Story)

Tuesday, December 06, 2011

Don't be Fooled by Silence: Clan Ilitch likely Supports (Perhaps Funding) New International Trade Crossing (NITC) Effort

That Tom Shields is out front on behalf of, and viciously attacking opponents of, the proposed New International Trade Crossing (NITC) and that Mike Malik, Mike & Marian Ilitch, and the Ilitch brands are conspicuously absent is not insignificant. They are either very involved behind the scenes helping to bankroll the efforts to approve NITC or they're asserting to Matty Moroun and the people at Ambassador Bridge that they're not involved (albeit with fingers crossed behind their backs) while their agent Shields' is an attack dog for the pro-NITC cause.

NITC: Which Way Ilitch?

Bridge Battle Posts at HuffingtonPost.com

Tom Shields is the president of Lansing, Michigan-based Marketing Resource Group. A large segment of his business is earned representing affiliates/partners of Michael J. Malik, Sr., and/or Mike Ilitch and his wife Marian Ilitch (Ilitch Holdings, Inc., Detroit Tigers, Detroit Red Wings, Little Caesar's pizza, MotorCity Casino, etc.).

If one sees Shields' name associated with any business coalition, political committee or a client that's not one of the premium brands mentioned above, odds are still pretty good that he's there because Malik and the Ilitches want him to be. When Shields refuses to reveal to a reporter who it is that's bankrolling a coalition or committee he's pimping for, odds are good Malik & the Ilitches are funding all or part of the effort. And even if Malik or the Ilitches don't have any direct interest in the coalition, political committee or client Shields claims to be representing, you can bet he has their blessing; otherwise, he wouldn't take the assignment.

So with that in mind, consider that Shields' is the spokesman for a coalition baking the New International Trade Crossing (a proposed second bridge connecting Detroit with Windsor, Canada). That bridge is at the center of a multi-million dollar, no holds barred, war raging in Michigan and beyond. (Read more at Huffington Post).

Typically, Shields' has refused to disclose who is funding the political, lobbying and advertising battles for the pro-NITC group although he's published a list of more than 100 individuals and organizations that "endorse" NITC. If those funding his coalition are on that list, why wouldn't he just point to that list? Take a look at that list. Then consider who's not on the list but would have interests in such an international connection.

You'll note that Michael Malik, Mike & Marian Ilitch, Christopher Ilitch, plus any of their venerable brands are conspicuously absent from the list; as are any of Detroit's three commercial gambling halls including the Las Vegas-owned MGM Grand Detroit. Yet, Shields is the mouthpiece for the "coaltion" backing the proposed government funded bridge. Hmmmm....

If Ilitch or gambling money isn't backing the pro-NITC group, you can bet that Shields has their blessing. Otherwise he'd have turned down the role.

If Ilitch and company brands or Las Vegas gambling interests are bankrolling the pro-NITC effort, there are many reasons political, marketing, etc. that they would want to keep that on the down low. That they've "secretly" funded Shields' campaigns and coalitions previously shouldn't surprise anyone that they could likely be bankrolling this pro-NITC effort now.

But perhaps they're not providing funding, or publicly endorsing but simply loaning Shields out to the cause. Maybe there's a conflict of interest on their part.

Consider that TVT has previously linked Michael Malik (and the Ilitches) with Manuel "Matty" Moroun, owner of Detroit's existing Ambassador International Bridge -- the decades old privately owned toll-bridge. And it's Moroun, along with the Koch brothers and others who are funding the multi-million dollar battle against the proposed NITC which would be built in large part with government funding.

Among other things, Moroun and Michael Malik have been Grosse Pointe neighbors. Malik owns property across Lake St. Clair on Harsens Island. Malik had dusted off and re-introduced development plans for Harsens Island a year or two ago that included a large man-made lagoon (marina) with access to the North Channel plus several hundred residential units (single family estate lots, attached garden homes and high-rise condominiums) surrounding the lagoon. The Ilitch's daughter Denise and her ex-husband originally owned the Harsens Island property and coincidentally, or maybe not, Moroun was also talking about a new Harsens Island bridge at the same time.

That Tom Shields would be playing such a high-profile role in such a contentious and expensive battle over the NITC, suggests he's doing it with the Malik/Ilitch blessing or even more so, at their request.

Regardless, someone should be asking these obvious questions.

See also:

Monday, November 07, 2011

Detroit's Casinos Poised to Lose 20-30% of Their Business to new Hollywood Casino Toledo next year

Short-sighted infighting and competitive jealousy among Detroit's three casino operators

could keep them from working together to collectively market Detroit as a destination

with sports venues, theaters, concert halls and other attractions.

Penn National Gaming's Hollywood Casino Toledo

Matt Helm of the Detroit Free Press is reporting that Penn National Gaming is set to open Hollywood Casino Toledo in April. The $300 million gambling palace will have 2,000 slot machines, 60 table games and 20 live poker tables; comparable in size to Detroit's three commercial casinos.

For more than a decade, Toledo residents who had an urge to gamble got in their cars or on charter buses to make the one-hour drive north on I-75 where they could play at any Detroit's three Las Vegas-style casinos. However, with the opening of the Toledo casino, locals there hope to stem the steady traffic northward and keep that gambling money in Toledo.

Detroit casino operators won't talk in detail about where their customers live, so it's not clear how much of the $1.3 billion in revenues reported at Detroit's three casinos each year since 2006 comes from Ohio residents.

But Jake Miklojcik, a casino analyst and president of Lansing-based Michigan Consultants who is often used as a resource by Detroit's casino operators, said he has heard out-of-state gamblers -- primarily from Ohio and Ontario -- represent as much as 20% to 30% of the clientele who sign up for Detroit casino player loyalty cards.

That Detroit’s self-interested casinos now spend their efforts as Miklojcik explains, "fighting over the same patron, money Detroit is going to get anyway," may create even greater exposure for the Detroit gambling halls. "That fight over that person," Miklojcik explains, " is a zero-sum game for the industry as a whole."

Penn National is the nation's third largest gambling enterprise with vast marketing expertise and experience. Their newest casino will open with amenities including a top-notch steakhouse, live entertainment seven days a week, and plentiful parking -- nearly 2,900 spaces. Penn National understands the importance of partnering with hotels in downtown Toledo and in nearby suburbs to offer entertainment packages with destinations such as the Huntington Center to lure visitors. The company plans to market “over the border” in southeast Michigan as well, including billboards along I-75 and U.S.-23.

The Toledo casino will be the first of four casinos to open in Ohio since voters approved one for each of the State’s four biggest cities. Penn National will operate all four venues. Read more

New Hollywood Casino Toledo just 1-hour for downtown Detroit

View Larger Map

Thursday, November 03, 2011

Naive Ignorance: Genesee County Officials Made Agreements with the now-Former Bay Mills Leader, Reportedly the Same Day he was Voted From Office

Naive Ignorance: One must wonder if the Genesee County officials mentioned in the article referenced in this post had even a clue that the Bay Mills Indians were holding an election this week and that now-former Tribal Chair Jeff Parker was facing a re-election challenge. That Genesee officials report making an agreement with Parker on the very day he was voted out of office hardly seems prudent.

Three words to remember for the future: Homework & Due Diligence.

For a generation, Parker had tightly ruled the Bay Bills Indian Community. Now there will be a new regime at the helm. Did Genesse County officials even anticipate that? Did they anticipate that any agreements with Parker might well be moot, simply unacceptable or even non-binding under the new regime?

It's understandable that local officials have little to no experience dealing with Indian tribes and Indian issues, but before they leap into discussions with or consider agreements with new leaders, they would be best served to survey their experienced counterparts representing communities in and out of Michigan and to also consult with lawyers and others with such expertise. Although they'll try -- their track record suggests so -- the tribal leaders and those behind the tribe's schemes are likely to refer expert lawyers and consultants for consideration by Township and County officials who would be wise to avoid any such referrals and instead seek out such expertise independently. Historically, the people behind the Bay Mills schemes have referred counsel and consultants sympathetic to their interests and those of their Indian partner.

Presently the Bay Mills owned land in Flint Township does not qualify as "Indian Lands." That is the opinion rendered by the State of Michigan, U.S. Department of Interior, National Indian Gaming Commission and District Court. The only one who suggested otherwise is now the former Chair of the Bay Mills Indian Community. The Flint Township property is not sovereign, nor held in trust, nor tax exempt; rather, it is subject to the same codes, regulations, laws, fees and taxes expected of others who own local property. There is no need for special emergency services agreements or other arrangements at this time for negotiated fees in lieu of taxes. And given the tribe's track record in Port Huron, it could be 20 years or more before anything like that is required or otherwise needed, so why agree to anything now?

Genesee County Road Commission agrees to road pact with Bay Mills Indian Community

11.03.2011

By Ron Fonger

FLINT TWP., Michigan -- No one is certain what will happen to undeveloped land owned by the Bay Mills Indian Community here, but the Genesee County Road Commission has agreed to partner with the tribe on future road improvements in the area.

The Road Commission on Tuesday approved an agreement with Bay Mills than could lead to special funding for roads in the area immediately surrounding the tribe's land at Dutcher and Lennon roads.

Road Commission Manager-Director John Daly said a representative of Bay Mills talked to county road officials last month, suggesting the "acknowledgement of public authority responsibility" agreement.

Tribal leaders had no new information about how the property will be developed and made no requests tied to future road needs... (Complete Story)

Liar, Liar: Ilitch using MotorCity Casino Jackpots to Fund Gambling Habits Outside Michigan; Pay-Off Las Vegas Casino Lords and Wall Street Fat Cats

Promises, Promises: Failed!
Both Marian Ilitch (she owns Detroit's MotorCity Casino) and Michael Malik (he was a MotorCity partner until he failed to get a Michigan gaming license in 1999) were behind the campaigns in the 1990s that asked Detroit voters to approve three Las Vegas-style commercial gambling halls. They promised Detroiters that approving gambling in Detroit would result in an economic windfall and help turn Detroit around. They said that casinos in Detroit would mean Detroit would capture gaming revenue instead of loosing it to Windsor or Las Vegas or elsewere.

Ilitch/Malik and the Detroit-based founders of MotorCity Casino told Detroiters that giving their enterprise the right to develop and operate one of three commercial casinos in Detroit meant keeping gambling revenue in Detroit.

And when Marian Ilitch took control of MotorCity Casino from Las Vegas-based Mirage Resorts in 2005, Ilitch spokespersons and MotorCity ad campaigns implied that Detroit-owned meant MotorCity Casino would uniquely be inclined to keep casino money in Detroit; that somehow Marian Ilitch would see the money stayed in Detroit.

Rich Got Richer, Not Detroit
Really? Casino doors have been open for ten years and yet Forbes just ranked Detroit as the #1 Most Dangerous City in America. Last month MotorCity Casino workers were told to start paying their own health care costs or face job loses. And since opening MotorCity Casino, Ilitch and Malik have made a habit out of chasing failed casino schemes in New York, California and Hawaii funded by Detroit casino money.

So yeah, Detroit money stayed in Detroit. Some small part of it... in the bank accounts of people named Ilitch and Malik. Forbes says Mike & Marian Ilitch are now worth $2 billion; and last year Mike Malik dropped $300,000 on a Las Vegas wedding that lasted one month and bought a $5.4 million New York City (Central Park West) Penthouse. But last month they told MotorCity Casino workers to start paying their own health care costs.

Truth is, the millions people are leaving on the gaming table and in the bellies of slot machines at MotorCity Casino aren't even staying in Michigan.

Truth is MotorCity Casino Making Las Vegas, Foreign Banks & Walls Street Fat Cats Richer
First, Marian Ilitch's 2005 acquisition of MotorCity Casino's controlling shares and the subsequent casino renovation/expansion that followed, came at a big price; hundreds of millions in fact that Marian Ilitch borrowed from out of state banks and Wall Street. And right now it's costing Detroit. She's financing MotorCity Casino on the backs of Detroit's taxpayers.

If MotorCity Casino wasn't so highly leveraged or had stayed true to its original financial projections and the economic studies they used to sell voters on gambling halls in the 1990s, maybe MotorCity Casino workers wouldn't have been told this last month to start paying their own health care costs or face losing their jobs.

Yes, Marian Ilitch did pony up some family cash to fund a small portion of the buyout and expansion, but in truth, she paid for her business decisions, in most part, with hundreds of millions borrowed by leveraging Ilitch assets and future MotorCity Casino earnings to attract investments from foreign banks and Wall Street. And because some of the investment "opportunities" were so risky they are rated as "junk bonds," Ilitch is paying higher interest terms.

Today, millions in cash Detroiters are leaving on the gaming tables and in the slot machines at MotorCity Casino flow directly to pay off Las Vegas casino interests, foreign banks and Wall Street fat cats.

If that wasn't bad enough, a big chunk of the millions Ilitch is raking in at MotorCity Casino have been spent attempting to expand the Ilitch gambling empire outside of Michigan -- to fund failed Ilitch/Malik ego projects.

MotorCity Casino Funding Failed Schemes to Expand Ilitch Gambling Empire Outside of Michigan
Yes, since opening the doors of MotorCity Casino, Ilitch and Malik have spent millions chasing prestige casino schemes outside of Detroit -- way outside, in New York, California and Hawaii.

As an example, here's a rough accounting of the millions the Detroiters have spent chasing just their New York City / Belmont Race Track casino dreams:

$25 million to acquire the exclusive rights to develop, manage and operate a casino
$5.4 million to purchase a NYC Penthouse
$2.3 million to D.C. Lobbyists
$1.5 million to Albany Lobbyists
$1.5 million to Political Campaign Committees

That's more than $35 million and just what's been disclosed or which they are forced to disclose. Most of what goes on at Ilitch Holdings is kept secret and under wraps. For a decade, they've certainly incurred other expenses. Consider millions spent during the last decade: flying a private jet back and forth to New York several times a week; paying attorneys and public relations and advertising execs in Lansing, Detroit, D.C., Albany and New York City; keeping the leaders of the Shinnecock Indian Nation in toe; and so on.

Shame, Shame!
Shame on Marian Ilitch and Mike Malik for promising they'd keep the gambling money in Detroit. Shame on them for suggesting to fellow Detroiters that if they were allowed to operate a gambling hall in the Motor City somehow Detroit would be a better place to live. Seems like the moment MotorCity Casino opened its doors, Marian Ilitch and Michael Malik forgot the promises they made to Detroit and they've never regretted their lies and misrepresentations.

Wednesday, November 02, 2011

New Bay Mills Chairman Plans to Wrestle Charlotte Beach Land Claims from Soo Tribe; Evict Current Residents

A Letter To Bay Mills Tribal Members

2.12.2011

As posted on Facebook at Kurt Perron For Tribal Chairman

* I will resolve our Charlotte Beach Land Claim which has been handed over to the Soo Tribe to use to obtain casinoes with. I will file a lawsuit against the Soo Tribe in federal court to have them kicked off our Charlotte Beach land claim using the Supreme Courts recent Carcieri decison as precedent. Once Soo Tribe is kicked off our claim, I will then issue an eviction notice to the current residents of Charlotte Beach. We can then use our claim ourselves to obtain several more casinoes in key areas, including Vanderbilt, without spending our Elders Fund in the process. We should have never given our Charlotte Beach Claim to the Soo Tribe to use for a casino in Romulus and now Lansing, this was our land and it was taken from us, not the Soo Tribe. If a casino ever opens in these areas it will be owned by Bay Mills, not Soo Tribe.

See also:

President/Chairman Parker, Longtime Crony of Detroit Gambling Promoter Michael Malik, Tossed Out by Bay Mills Indian Community Voters

Jeff Parker held the Presidency of the Bay Mills Executive Committee for a total of 20 years coinciding with Detroit gambling promoter Michael Malik's influence over the Bay Mills Indian Community (Brimley, MI). In an election held today among Bay Mills voters, Parker was tossed out of office losing his re-election bid to newcomer Kurt Perron, 54% to 46%.

Parker and Malik had pursued failed schemes to develop an off-reservation casino in Port Huron (MI) for a generation. Malik's various syndicated affiliates (Blue Water Resorts, etc.) have spent millions lobbying in Lansing and Washington, D.C. and attempting to buy influence with key politicians. Recently they opened a small slots casino in Vanderbilt (MI) which was subsequently ordered closed by court order.

They had announced an intent, albeit hollow, to similarly open a casino in Flint Township. Attempting to shore up credibility with Bay Mills voters, Parker had made several high-profile PR appearances in Flint Township suggesting he was on the verge of opening the casino there and as such, bringing increased economic prosperity to both Flint and the Bay Mills Indian Community.

Perron defeats Parker for chairman's seat

11.02.2011

BAY MILLS — A new face will head up Bay Mills Executive Council as a result of the Nov. 2 General Election. Kurt Perron defeated incumbent Jeff Parker 321 [54%] - 273 [46%]. Perron will be joined by another fresh face on the council, as Joe LeBlanc defeated Allyn Cameron 313-280 for the vice chairman's seat. Incumbents Richard LeBlanc, John Paul Lufkins, and Dwight "Bucko" Teeple will remain on the council.

Another upset this election was the seat of chief judge. Incumbent Shelly Deuman lost to Levi Carrick, Sr.

Taking seats as appellate judges will be Shannon (Lufkins) Belk and Justin Teeple.

See also:

Another Sign Port Huron is no longer Betting on Mike Malik's Bay Mills Casino

Aquarium goes belly-up

11.02.2011

By Liz Sheperd

...In May 2010, the city approved paying New Zealand-based Marinescape Ecoaquariums $100,000 to study the feasibility of opening an aquarium at the site of the former YMCA building at Beers and Fort streets...

But the city council approved purchasing the old YMCA for $200,000 in December and razing the facility for more than $230,000 in March. Officials said if the aquarium didn't come to fruition, some other development could go into the property...

Mayor Pauline Repp, however, said the money the city paid for the YMCA site was not tied to the aquarium development. She said the city's only cost in the project is the $100,000 for the aquarium study. The acquisition and demolition costs will be recovered when the land is sold to a developer, she said.

"I never wanted the city taxpayers to pay for it, and it doesn't look like there's anyone else coming forward," she said.

In November, after the Bay Mills Indian Community bought the old post office property and said it was bringing a casino to the city, officials said the aquarium could be moved to Desmond Landing and tied into the casino.

Brown said that aquarium plan ultimately proved unworkable as well. Meanwhile, Bay Mills is locked in a federal court battle about the legality of having casinos on property not recognized as Indian land by the government. That case won't be heard until next year... (Complete Story)

The Dykema Law Firm: the legal team behind the Bay Mills, Los Coyotes & Shinnecock Indian casino schemes

Local Law Firm Goes All In

By Randy J. Stine

The gaming law attorneys at Dykema in Downtown Lansing know it’s a bit of a gamble to try and get a casino built these days.The extensive regulatory system established in Michigan, under the Michigan Gaming Control and Revenue Act, makes the casino development process long and tedious.

“To say it is not easy to complete a casino project here in Michigan or anywhere else is an understatement,” says Jason Hanselman, an attorney specializing in gaming law at Dykema. “These projects can take from five to 10 years to complete.”

Dykema, which has just over 20 employees at its Lansing office, has been involved in nearly every aspect of casino gaming in Michigan, including the development of casino gaming on Native American land and the implementation of Proposal E that gained voter approval in 1996 and brought commercial casinos to Detroit.

“We actually helped draft the language in Proposal E in the mid-‘90s. Once it passed we worked to draft the final statute and regulations to implement casino gaming in Detroit,” Hanselman says.

The firm’s gaming law division assists clients on every aspect of casino gaming regulation, from contracts to real estate acquisitions to licensing and finally navigating the state and national regulatory process. “Michigan is known to have the most rigid gaming licensing processes in the country. [Michigan] prides itself on being the most rigorous licensing and regulatory jurisdiction,” Hanselman says.

Dykema attorneys are typically hired by a casino developer who in turn works in partnership with one of the Native American tribes, to get a project rolling. Hanselman explains, “It’s a gamble for the developers from the onset. They’ll pour a lot of money into projects that may never ever happen for whatever reason. There are lots of hurdles. ”

Michigan’s 19 tribal casinos, along with three commercial casinos in Detroit, operate under the authority of the Michigan Gaming Control Board.

Casino development in this state and elsewhere has been a huge area of economic growth over the past decade, Hanselman says. “It’s really a sign of the economic times. A lot of states see casinos as another source of revenue. It’s a chance to create a new tax base. Ohio recently enacted casino gaming and Illinois is moving in that direction.”

Gambling is no longer the big societal taboo, either, since you can now watch poker three nights a week on ESPN, he adds.

While development of tribal casinos in Michigan has slowed a bit recently, partly due to the maturity of the industry, charitable gaming has exploded, Hanselman says. “Michigan law allows nonprofit groups to obtain licenses to run millionaire parties. These groups raise a lot of money through fundraising. It’s been a huge growth area for us the past two years. We help nonprofits secure licenses, which they use as part of their fundraising activities. The demand [for licenses] is high,” he says.

Dykema’s Lansing office, which sits adjacent to Michigan’s Capitol Building in Downtown Lansing, also has Michigan offices in Detroit, Ann Arbor, Bloomfield Hills and Grand Rapids. In addition, Dykema has offices in Chicago, Dallas, Los Angeles and Washington, D.C.

Hanselman, who joined Dykema in 2001, works closely with Lance Boldrey on gaming issues at the firm. Boldrey, former deputy legal counsel to former Michigan Gov. John Engler, focuses on Indian law and is involved in lobbying federal and state decision makers.

Boldrey currently is working closely with a developer in New York on a casino project near New York City involving the Shinnecock Indian Nation.

“[Dykema] is currently working with them on site selection, so it is still in the predevelopment stage, but this could turn out to be one of the largest casinos in the country. We are optimistic we could be within a year or two of breaking ground. We also worked to have the Shinnecock tribe federally recognized, which happened last fall,” Hanselman says. “There are many, many facets to completing such a large project.”

Internet gaming and online poker will be the next big development in the gaming world, Hanselman predicts. In April, federal authorities shut down three of the largest offshore online poker sites and now there is a renewed effort to legalize and regulate Internet gambling in this country, he says.

“In fact, in Washington the group of 12 U.S. senators in charge of finding some $1.5 trillion in debt savings are eyeing Internet poker as a one of the means to doing it, so it’s coming. I think it is inevitable,” Hanselman adds.

Tuesday, November 01, 2011

After Waiting 20 Years for a Bay Mills Casino, Port Huron Moving On with Plans for Convention Center

EDITORIAL: New project is the boost city needs

Oct. 28, 2011

For years, Port Huron has longed for a major economic development. The city's time has come.

A new convention center and a revamped Thomas Edison Inn aren't the answers to Port Huron's economic needs, but they do constitute a significant boost.

Tourism leaders always tout Port Huron's potential as a destination. This $27.8 million project will give tourists a new reason to visit and a new place to stay.

Before the project was formally unveiled Thursday, Port Huron City Manager Bruce Brown called it "a game changer for our community." It's difficult to disagree.

The hotel will be remade into a Hilton Garden Inn and a new 40,000-square-foot convention center will be attached to it. The hotel also will feature a new Twisted Rooster restaurant.

A Baker College of Port Huron facility will be home to a new culinary arts program and student housing will be built near the culinary institute.

Port Huron and St. Clair County officials have reason to brag about the project. It will take up 15.5 acres of land next to the Thomas Edison Parkway, a location that should make the most of its view of the St. Clair River.

The partnership of public and private interests might be an admission that government must play a role in economic development, but it also shows what that kind of cooperation can achieve.

The public stake in the project starts with the county. To finance the convention center, $9 million in 30-year bonds will be issued. In addition to building the facility, the money will cover the cost of buying its land and 11,000 square feet of meeting space at the hotel.

The bonds will be repaid from convention center revenue, tax money from the city's tax increment finance district and the Blue Water Area Convention and Visitors Bureau.

First on the list of returns are the jobs the project will create. The project will be done in two phases. The hotel and restaurant renovations should start Jan. 1 and be finished by July -- just in time for Boat Week.

The convention center is scheduled to be finished in May 2013. The Baker College facility will be finished by November 2012.

It is fitting that the Edison Inn is the focus of this new development. The hotel once was the focus of Port Huron's hopes for a casino gaming facility.

The hotel and convention center project is a kind of confirmation. A casino undoubtedly would change Port Huron's fortunes, but this development is proof the city and county are making their own luck -- and it's about time.

Monday, October 31, 2011

Similarities Between Strategy to Approve Bay Mills Land Claim and Native Hawaiians' Attempt to Restore Sovereignty

The Common Interest in Both Schemes is

Detroit Gambling Promoter Michael Malik

Detroit Gambling Promoter
Michael J. Malik, Sr.

Blogger’s Note: Does this cram-it-into-an-appropriations-bill strategy not in the Hawaii Free Press story highlighted below sound familiar? Recall when lobbyists and operatives for Detroit gambling promoter Michael Malik attempted to get approvals of the Bay Mills Indian Community Land Claims Settlement crammed into an Appropriations Bill? or the Transportation Omnibus? Those attempts were ultimately intended to get approvals needed to pave the way for Malik’s Bay Mills Indian casino in Port Huron (MI).

Consider this... Malik has attempted to establish gambling (a casino) in Hawaii for the better part of a decade. He’s not been able to get legislative or voter approval despite major efforts in 2001 and 2010-11. But recently he’s been spotted palling around on Long Island (NY) with former Hawaii Governor John Waihee.

Waihee was the first Governor of Hawaii to be of Hawaiian ancestry and he was the person who appointed then-Rep. Akaka to fill the U.S. Senate seat that had been held by Spark Matsunaga, making Akaka the first person of Native Hawaiian ancestry to serve in the Senate.

While Waihee has been an opponent of gaming in Hawaii, for the better part of his life, he’s been a ring leader in the movement to restore Hawaiian Sovereignty. Should Native Hawaiians be Federally Recognized, Malik might be able to get his Waikiki casino – in the same way he hopes to build, manage and operate a Long Island casino using a bargain he struck with the Shinnecock Indian Nation. And should Waihee, who’s had personal financial challenges in recent years and who was embroiled in the Bishop Trust scandals detailed in “Broken Trusts, ” be personally enriched through a Native casino in Hawaii, it would be a grand slam for the former Governor.

Another Akaka Bill sneak attack? GOP Senators tell Inouye to back off

News Release from US Senate Republican Caucus

12.03.2010

WASHINGTON – Senators Jon Kyl (R-Ariz.), Lamar Alexander (R-Tenn.), John Cornyn (R-Texas), and Tom Coburn (R-Okla.) today released the following statements in response to reports that the Native Hawaiian Government Reorganization Act – legislation that would establish a new governing entity for individuals of native Hawaiian descent – may be added to an Omnibus Appropriations Bill or a Continuing Resolution, one of which must pass Congress and be signed by the president this month, or the federal government will not have the funding to operate.

“Legislation as highly complex and divisive as the native Hawaiian bill requires vigorous discussion, debate, and amendments,” Kyl said. “An attempt to include it in unrelated legislation to keep the government operating is a breach of process and is an example of what the American people are tired of – back room deals that are inserted in secret packages written behind closed doors.”

“I’m concerned by reports that a special Native Hawaiian bill, or any other controversial measure, might be quietly inserted into must-pass legislation that’s needed to keep the government open,” Alexander said. “If the Democratic majority wishes to pass legislation that would create a new, sovereign government within our borders based solely upon race, it should be brought up separately and debated openly on the Senate floor with the opportunity for amendment.”

“This November, Americans spoke and we listened,” said Cornyn. “Unfortunately, some of my Senate colleagues did not hear the resounding message that rejected secret backroom deals and controversial legislative distractions like this... (Complete Story)

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NEWS: Bay Mills Indian Community & Casino Proposals

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